It’s Almost Child Tax Credit Time — Are You Eligible?
On July 15, eligible Americans will receive their first monthly installment of the child tax credit expansion which is part of the stimulus relief bill.
The IRS is planning on establishing two online portals for people to register for the payments if they filed late or general changes and updates for any demographic information that might be necessary such as income and number of dependents.
Here is who will be eligible:
Single Filer – Adjusted gross income of $75,000 or less for full amount. This phases out by $50 for $1,000 of income over $75,000 fully phased out by $240,000.
Head of Household Filer – Adjusted gross income of $112,500 or less for full amount. Begins phasing out above threshold and fully phases out at $240,000.
Couple filing jointly – Adjusted gross income of $150,000 or less for full amount. Begins phasing out above the threshold and fully phases out at $440,000.
This means that couples filing jointly that make under $440,000 a year will receive at least some form of payment says CNET.
You can find a handy child tax credit calculator here to give you a better idea of where you stand.
Another detail to consider includes information for divorced parents. The child you are claiming as a dependent for the credit must live with you for at least six months out of the year in order for you to receive the credit. Parents who share custody cannot both receive the credit.
In addition, any child being claimed as a dependent must have a social security number and, for married couples filing jointly, at least one spouse needs to have a social security number or an individual taxpayer identification number.
For children under 6 years of age, the full amount benefit will be $3,600, given income requirements are met. For children 6 years of age and older up until the age of 17, the full amount benefit given met income requirements will be $3,000.
You can also claim up to $500 for an 18 year old, as well as full-time college students aged 19-24.
Monthly payments will be $300 and will last from July until December and in total disperse half the benefit amount you are entitled. Next tax year, you will be able to claim the other half of the benefit.
Even if you are a regular non-filer, you will need to file your 2020 tax return in order to receive this benefit. IRS Commissioner Charles Rettig told CNET that payments will be automatic to those who have filed before the deadline. If you didn’t get your taxes filed on time, don’t worry, you can still file for an extension and if you do not owe any taxes to the IRS, you will not pay a penalty for late filing.
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